Finance Innovations

GLOBAL ALLIANCE FOR BANKING ON VALUES

The Global Alliance for Banking on Values (GABV) is a network of banks aiming to use finance to deliver sustainable development for people, communities and the environment. Founded by BRAC Bank in Bangladesh, ShoreBank in the US and Triodos Bank in the Netherlands, members must be independent and licensed banks with a focus on retail customers, hold a minimum balance sheet of $50 million, and show commitment to social banking and the triple bottom line of people, planet and profit. With total assets of $26 billion, GABV has the power to make a difference.

Benefits: All
Innovators: The Global Alliance for Banking on Values, Triodos Bank, BRAC Bank, ShoreBank

Watch a video about the GABV

Watch a video of Triodos taking over Times Square

PEER TO PEER LENDING

ECOBONDS TO FUND RENEWABLE ENERGY PROJECTS

Energy companies, including Good Energy and Ecotricity have launched innovative ecobonds to enable investors, customers and the public to support their renewable energy projects. The scheme offers investors an attractive annual interest rate, whilst the companies benefit by recieving a funding boost to expand their renewable portfolios.

Ecotricity's Ecobond scheme has raised £15 million to date and are currently oversubscribed. These scheme have attracted an increasing number of people who wish to invest ethically and be part of the green energy revolution.

Benefits: energy generation
Innovators: Good Energy, Ecotricity

CROWD-SOURCING INVESTMENT FOR ENTREPRENEURS

Want to invest in a green business idea? Social investment company 33needs is helping the public support social enterprise, bring eco-friendly products and services to market and make a return on their investment. When enough people support an idea, even small amounts can make a big difference.

The 33needs.com website features profiles of social entrepreneurs, showing the projects they need funding for and the amount they hope to raise. Investors can pledge as little as $10 to support a project, and they’ll receive a fixed share of any future profits. If projects don’t reach their fundraising targets within a fixed timeframe, no money changes hands.

The site already has 700 enterprises keen to be involved since its launch in February 2011.

Discover how 33needs works

Benefits: biodiversity, carbon reduction, energy efficiency, reduce, reuse, recycle, water efficiency
Innovators: 33needs

WORLD'S FIRST ENVIRONMENTAL PROFIT AND LOSS RESULTS

Puma has become the world's first major corporation to publish details of the cost of its impact on the environment. It has calculated that the combined cost of the carbon it emitted and water it used in 2010 was 94.4m euros ($134.3m; £82.8m). The figure includes the company itself and its suppliers.

The organisation wanted to find tangible ways it can consider nature and environmental impacts in their decision making and inform them to create a more resilient and sustainable business model. Since ecosystem services are vital to the performance of most companies, integrating the true cost for these services in the future could have significant impacts on corporate bottom lines.

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Benefits: carbon reduction, water efficiency
Innovators: Puma

LEGAL FRAMEWORK FOR HYBRID BUSINESSES

‘Benefit corporation’ laws enacted by US states such as Maryland create a new legal status for organisations that wish to pursue environmental or social goals in tandem with shareholder returns. Organisations incorporating as a benefit corporation must report to shareholders on progress towards their environmental or social goals with the same standards and rigour used in their financial reporting. This legal status also provides assurance to investors that an organisation with an environmental mission will continue to pursue its goals regardless of changes to ownership or management.

Benefits: All
Innovators: B Labs